How to save themselves after the fall of Dangdang

2012 Q4 earnings have been announced, Dangdang fourth quarter net revenues of $710 million 900 thousand, although an increase of 58.7%. But net profit fell 33.2%, to $14 million 800 thousand. From the performance point of view, Dangdang still failed to give the market a certain amount of confidence. Although the past is gone, but for Dangdang, some things that Yong again it is a good thing, at least from the current Dangdang development dilemma, appropriate reference under the original development experience is necessary. As for why I would like to have this idea, because since 2012 Dangdang open platform has been achieved since the results are good. Take some time ago, Dangdang announced Q4 earnings, the deficit is still a pledge, although everyone says Dangdang is now very rich, but also support a period of time, but if the carrying amount of funds flow to Dangdang is abundant, in the rapid expansion of capital business electricity Chinese, also won’t last long, in other words, now Dangdang really the need to find a way to make money, there is no retreat. Then the development of the grand compared with before, what operation strategy Dangdang should not overdo sth..

has just entered the market in 2000 Dangdang, development vision is very elite, aimed at the online book sales this cake, although the domestic does not have opened the online bookstore; not a dynamic updating of the bibliographic database; Internet based number up to run on the network bookstore, not a suitable logistics system of library the distribution of China but the number of Internet users is growing rapidly, but also grow with each passing day reading needs, Dangdang into this market was immediately invigorated. This is a wise decision to Dangdang, but Dangdang apparently caught in a blindly follow the cycle, others see the expansion category, Dangdang open platform, invite people to enter, see others to their own brands, Dangdang also Dangdang get a superior products, but these are used? Although Dangdang suspended selling books Lang’s hat, but it shows that Dangdang has unshakable position in the field of books and audio-visual products, so why not to take advantage of this advantage to department store? Maybe you will say the whole user books audio-visual products purchasing power is low, but I want to say that even the product development, Dangdang also should extend from audio and video products, rather than casually selling clothes, selling shoes. This is caused by high inventory Dangdang can not bear the pressure.

care too much about the implementation of the strategy, while ignoring the strategies to deal with changes in the market. Before there is a lot of people say that Yu Yu and Li Guoqing’s husband and partner are very rare in the electricity business, with two people is quite effective, more than 1 billion of the valuation of equity repurchase from 2002, Dangdang can see, two very determined in the execution. But when the sound is a double-edged sword, because everyone knows that the Internet business is about a quick word, but also the development of Chinese electricity supplier also really is not any law, everything can not be established with steps to go, so this is the test operator’s command ability, and in the electronic business strategy, Dangdang apparently lost to Jingdong, even Amazon from the dynamic > Open Platform

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